FRA highlights Forestry’s ROI and Sustainability Credentials

FRA has highlighted a piece by Doug Jones of Remsoft in the Environmentalleader.com, which talks about achieving both sustainability and return on investment through investing in forestry.

Bainbridge Island, WA, May 09, 2012 – Forestry Research Associates (FRA) has highlighted a piece by Doug Jones of Remsoft in the Environmentalleader.com, which talks about achieving both sustainability and return on investment through investing in forestry.

Remsoft’s Vice President of Forestry explains that finding an investment that is ethical and offers potentially strong returns is a difficult ask these days. With such major demands on commodities, energy and food, sustainability is increasingly important issue for investors to consider, claims FRA. Mr Jones offers an example of an asset class that fits the bill: timber.

There is an ever-increasing demand for timber, according to Jones’ article, which cites figures published by the Oregon Resources Institute. These figures show that US citizens now consume 3.5 times more timber than they did back in 1970. With emerging markets like china, India and Brazil all desperately improving their infrastructure and building housing in urban regions, the demand for timber from these countries is also increasing.

The secret to sustainability, claims Jones, is developing a model by which timber can be grown and harvested, while forests are always growing. A rotation method can be used to achieve this – generating timber for sale, but also ensuring that standing forests are planted and maintained, which helps provide carbon dioxide absorption and habitats for animals.

As well as its sustainability credentials, forestry investment can also offer some serious ROI potential, according to FRA’s analysis partner Peter Collins. He said, “timber has consistently outperformed equities over the long-term and can offer an investment solution that has a low level of correlation with major economic trends – providing opportunities for investors to diversify their investment portfolios against risk.”

FRA supports the work of Greenwood Management, which operates plantation projects in Brazil, growing sustainable, fast growing breeds including teak and eucalyptus.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

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